Gold rose instantly right after the FOMC Minutes appeared, as the U.S. dollar sold off. The price of gold broke through resistance at $1,130 /oz, pushing towards its critical technical level of $1,135 /oz. Gold traders are clearly reliefed that the Fed stays focused on its 2% inflation target, and that inflation remains an important condition before rising interest rates.
The FOMC Minutes were not very convincing, as opinions within the Fed were divided.
From the Wall Street Journal:
Minutes of the Fed’s July policy meeting left mixed markers about whether central bank officials are leaning toward or against a rate increase at their next meeting after months of signaling that they intend to move away from the near-zero interest-rate policy before year-end.
“Most [officials] judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point,” said minutes of the Fed’s July 28-29 meeting, released Wednesday.
If gold will succeed to close the month above $1,150 /oz it would be a good argument that gold is turning its downtrend.